05.09.12 | New York Post

Deal is a go in SoHo

Two older industrial office buildings near the Trump SoHo Hotel are being bought and combined into a new, modern entity called One SoHo Square, named after the park across Spring Street.

Stellar Management’s Larry Gluck and an institutional partner were closing yesterday on the $200 million purchase of 161 Ave. of the Americas and 233 Spring St. from Earle Kazis, Ronald Mount and other investors, sources said.

Sam Schneider and Daniel Glaser of Imperium Capital said they teamed with Gluck on the deal. They previously bought the Apple store building at 103 Prince St. in SoHo with Centurion Real Estate and are accumulating other investments. “We’re really excited we bought the deal,” said Schneider.

Between the 16-story, 320,000 square-foot Butterick Building at 161 Ave. of the Americas and the 10-story, 250,000 square-foot loft property at 233 Spring is a 20-foot wide loading dock that runs all 214 feet from Spring to Vandam streets.

According to sources, Gluck’s architect, Gensler, devised a plan to create a new center core, including a lobby, elevators and staircases in what is now the dock space, and add a penthouse to make one 748,000 square-foot building.

“It would create operating efficiencies,” said one source. Gluck and his partners will be able to eventually recapture the spaces that are now being occupied by several lobbies, at least 13 elevators and a number of staircases.

As small tenants move out, the owners will be able to turn the recaptured space into leasable office and retail spaces, while modernizing the building with roughly $50 million in improvements.

Sources said Doug Harmon and Adam Spies of Eastdil Secured advised Gluck and obtained equity from Rockwood and financing from Starwood Capital.

Gluck may be pouring in some of his profits from his recent $630 million sale of five new Columbus Square buildings brokered by Harmon to UDR earlier this year.

None of the parties returned request for comment.